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Crude Oil Prices Surge Amid US-Iran Tensions: Brent Crosses $85, Asian Markets Show Mixed Trend
Crude Prices: Oil prices rose due to escalating conflict in West Asia, while Asian markets showed a mixed trend. Markets in Tokyo and Seoul recovered after initial losses. Here is a look at the impact on global markets.
Prices of oil in the international market have risen due to tensions between the United States and Iran. Crude prices were higher during early trade on Tuesday, as tensions in West Asia increased. There was a mixed reaction from the Asian stocks; the stocks in Tokyo and Seoul moved up following the initial fall.
On Tuesday, the price of the Brent crude oil benchmark went up by 2.3% to $85.18 per barrel, which is a 10% increase in total. The price of US crude oil benchmark also saw an increase of 2.5% to $80.15 per barrel. In the MCX, crude oil for July delivery increased by ₹282 (3.83%) to ₹7,642 per barrel, and 15,479 lots were traded. Similarly, the August contract rose by ₹240 (or 3.25%) to ₹7,634 per barrel, with 7,739 lots traded.
Although crude prices remain below the peak of $120 per barrel seen during the West Asia conflict, the escalating standoff between the US and Iran over control of the Strait of Hormuz has heightened uncertainty regarding future crude supplies. US President Donald Trump accused Iran of reimposing a blockade on the Strait of Hormuz, leading to intensified US actions against Iran. Amidst this geopolitical tension, US stock futures showed a mixed trend. Amid ongoing tensions in West Asia, oil tankers are unable to transport crude oil to customers via the Persian Gulf, causing a rise in global crude oil prices.
